Which of the Following Statements Is True with Respect to the Binomial

question 22

Multiple Choice

Which of the following statements is true with respect to the binomial distribution?

• A) The binomial distribution tends to be more symmetric as the probability of success p approaches 0.5.
• B) As the number of trials increase, the expected value of the random variable decreases.
• C) As the number of trials increase for a given probability of success, the binomial distribution becomes more skewed.
• D) The binomial distribution tends to be more symmetric as the probability of success p approaches 1.0.
• E) None of these.

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Definitions:

Total Revenues

The total sum of money received by a company for goods sold or services provided during a certain period.

Grains

Refers to small, hard seeds, especially the seeds of plants such as wheat, corn, oats, barley that are used for food.

Price-Elastic

describes a market condition where the demand for a product changes significantly in response to a change in its price.

Consumer Spending

The total expenditures by households on goods and services, which is a primary component of aggregate demand in an economy.